Vince Cable refers Sky case to Ofcom

Business secretary Vince Cable has intervened in News Corp’s attempted takeover of BSkyB.

A day after James Murdoch officially notified the European Commission of the company’s plans to buy the remaining shares of Sky, Cable has taken steps to refer the takeover bid to media regulator Ofcom.

“On the basis of the information and submissions available to me, I have decided that it is appropriate to issue an intervention notice in this particular case,” he said. “The independent experts at Ofcom will now investigate and report to me on the media plurality issues that may arise from this proposed acquisition.”

Ofcom have until 31 December to submit a report to Cable examining the impact of the proposed buy-out on media plurality in the market.  Once Cable has received the report, he will then decide whether to refer to issue to the Competition Commission.

In response to Cable’s intervention, the publisher said: “News Corporation is confident that the proposed investment will not adversely affect media plurality in the United Kingdom and looks forward to discussing any substantive issues with the relevant authorities.”